ORIENT CABLE (NBO)(SH:603606)2021-07-28 16:00Financial Performance - The company's operating revenue for the first half of 2021 reached ¥3,386,730,797.52, representing a 59.57% increase compared to ¥2,122,380,392.64 in the same period last year[15]. - The net profit attributable to shareholders of the listed company was ¥636,952,790.17, up 74.43% from ¥365,154,079.09 in the previous year[15]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥632,178,868.11, a 94.52% increase from ¥324,998,618.22 year-on-year[15]. - The basic earnings per share for the first half of 2021 was ¥0.97, reflecting a 73.21% increase compared to ¥0.56 in the same period last year[16]. - The company's total assets at the end of the reporting period were ¥7,056,124,728.53, a 15.83% increase from ¥6,092,020,579.36 at the end of the previous year[15]. - The net assets attributable to shareholders of the listed company increased by 16.35% to ¥3,637,620,595.67 from ¥3,126,578,225.91 at the end of the previous year[15]. - The weighted average return on equity rose to 18.49%, an increase of 2.56 percentage points compared to the previous year, while the return on equity after deducting non-recurring gains and losses increased by 4.18 percentage points to 18.35%[17]. - The total comprehensive income for the first half of 2021 was ¥644,006,587.66, compared to ¥404,954,948.34 in the same period last year, marking an increase of 59.0%[140]. Cash Flow and Investments - The net cash flow from operating activities was negative at -¥177,260,497.95, compared to a positive cash flow of ¥484,692,898.18 in the previous year, indicating a significant change in cash flow dynamics[15]. - The net cash flow from operating activities was -177,260,497.95 RMB, a decrease compared to 484,692,898.18 RMB in the previous period[143]. - The company reported a net cash flow from financing activities of ¥195,162,218.85, attributed to the addition of long-term borrowings of ¥350 million during the period[73]. - Cash inflow from investment activities was 321,791,879.69 RMB, significantly higher than 9,967,293.00 RMB in the previous period[143]. - Cash outflow for investment activities rose to 669,046,630.64 RMB from 214,482,271.96 RMB year-on-year[143]. Market and Industry Trends - The global wire and cable market is projected to grow from $184.92 billion in 2019 to $269.46 billion by 2027, with a compound annual growth rate of 5%[23]. - The Chinese wire and cable industry is expected to achieve sales revenue of 1.6 trillion yuan in 2021, with a compound annual growth rate of 5.09% from 2019 to 2024[23]. - The global offshore wind power market installed capacity exceeded 35 GW in 2020, growing by 106% over the past five years[32]. - China accounted for 50.45% of the global new installed capacity in offshore wind power in 2020, with an addition of 3 GW[31]. - The global market size for submarine cable systems reached $8.12 billion in 2018 and is projected to reach $16.56 billion by 2023, with a compound annual growth rate of 15.32%[32]. Research and Development - Research and development expenses rose by 53.06% to ¥115,766,115.61, reflecting increased investment in high-end products such as dynamic submarine cables and ultra-high voltage optical-electrical composite submarine cables[73]. - The company has undertaken 18 national major scientific research projects, establishing a collaborative innovation model with domestic and international research institutions and universities[49]. - The company has initiated 13 new technology projects and applied for 9 patents, with 3 patents granted during the first batch of "Four New" projects[61]. - The company has invested heavily in R&D, with R&D expenses accounting for 8% of total revenue, focusing on new product development and technological advancements[197]. Risk Management - There were no significant risks that materially affected the company's production and operations during the reporting period[5]. - The company has outlined various risks and countermeasures in its report, ensuring transparency in its operational challenges[5]. - The company faces risks from raw material price fluctuations, particularly in copper and lead, which could significantly impact profitability[84]. - The company is exposed to policy risks related to national industrial policies affecting the cable industry, which could alter market demand[85]. - The company anticipates potential market risks due to high competition in the cable industry, with over 4,000 sizable enterprises in China[87]. Environmental and Compliance - The company emphasizes environmental protection, utilizing a closed-loop water system with no external discharge and ensuring wastewater meets discharge standards[97]. - The company has implemented a comprehensive safety and environmental management system, ensuring compliance with safety standards and regular monitoring[99]. - The company actively recycles metal waste and disposes of hazardous materials according to national regulations[99]. - The company has established a comprehensive emergency response plan for environmental incidents, emphasizing rapid response and resource sharing[100]. Corporate Governance - The actual controller and shareholders have committed to not engaging in any competitive activities with the company's main business[103]. - The company has limited related party transactions with Ningbo Avatar Supply Chain Co., Ltd. to no more than 3% of total sales, capped at 30 million yuan annually[105]. - The company and its controlling shareholders have adhered to laws and regulations, maintaining integrity in operations[108]. - The total number of ordinary shareholders reached 52,702 by the end of the reporting period[115].